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JLS

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Alias Born 12/14/2004

JLS

Re: gdl post# 5101

Wednesday, 06/14/2023 2:34:45 AM

Wednesday, June 14, 2023 2:34:45 AM

Post# of 5534
Disinflation is:

on average, in a healthy economy, a temporary slowing of the pace of price inflation.

In other words, there is on average always going to be inflation in a healthy economy. Why is that the case? Because people feel better about themselves every time they get a raise. That's positive feedback. People will work harder and stay at their jobs longer when they get positive feedback. That positive feedback comes most often from an increase in salary. But that increase in spending means nothing on average because sellers will respond by raising prices. This process is basically a circle jerk.

A healthy economy is a teeter-totter economy in terms of prices versus income. If anyone wants a better lifestyle, the easiest way to do that is to increase their value. The way to do that is through more or better education, preferably obtaining additional skills that are in higher demand. That additional education will cost them something but if they chose the right path, they will get more out than they put in.

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